January 19, 2018 / 1:13 PM / 3 months ago

Price of Norwegian farmed salmon seen rising to NOK 53/kilo next week

OSLO, Jan 19 (Reuters) - The price of Norway’s farmed salmon is expected to rebound by around 3 crowns to 53 Norwegian crowns per kilo next week for deliveries in Oslo, industry sources told Reuters on Friday.

“Storms on the coast have led to some cancellations and lower supply, pushing prices up to 52-53 crowns next week from 50 this week. But we think this is short lived,” said a producer who declined to be named.

Prices were initially expected to drop below 50 crowns in the current week but came in somewhat higher due to rough weather conditions.

An exporter confirmed the price was set to rise to 53 crowns, adding that it may well drop back down again when the supply chain returns to full production.

Salmon prices peaked at around 80 crowns per kilo in early January of 2017 at a time when supply constraints supported prices, but have since fallen as volumes grew.

Production growth from Norway is expected to be around 9 percent in 2018, the Norwegian Seafood Council predicted in early January.

Norway is the world’s top salmon exporter, and the share price of listed farming companies depends heavily on changes in the price of fish.

Average production costs for whole fish, including the cost of harvesting, rose by 13 percent to 34.29 crowns per kilo in 2016, according to data from the Norwegian Directorate of Fisheries.

Leading Norwegian producers include Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood and Norway Royal Salmon. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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